Stock Market Blog -May 18th

After a big rally on Monday, the market gave it all back by the end of the week. The Russell 2000 small-caps also dropped to the Feb low -maybe we'll get a bounce here. Bonds and the US Dollar rallied, while Gold dropped back under $1300 again. Oil closed over $100 again. Gold miners (GDX) seem to be headed lower again.

WMT dropped after reporting earnings; as did WWE. CSCO rallied.

New all time highs:  DDS, JWN, KR, UNP, NVS, UN, UL, 
All time lows:   -

Pops:  CSCO    Drops:   

Next week:  Economic reports,   

Earnings:     CPB, HD, LOW, TGT, BBY, HPQ, PETM

Market Commentary

The markets seem to be undecided, with the S&P500 still stuck in a range. Lack of buyers? Maybe the 'sell in May' crowd will set the next trend? Small-caps are still in a down-trend, though now at a support level. Volatility is super low (VIX) ,  a contra indicator that might indicate a market top. Maybe buying VIX or VIX related Options could be a viable strategy here.

For Option traders, because of the low Volatility, Calendar Spreads would be appropriate here.

This week's charts:

S&P 500 -still forming a top?
10yr Interest Rates -dropping!
Labor Force Participation Rate (10 year chart)

Commodities/Futures (charts):
Crude Oil was up a bit, closing at 102.02...  -back above $100
Natural Gas dropped, closing at 4.41
Gold was mostly unchanged, closing at $1293
The 30 year Bond was up, closing near 137.43 

The US Dollar dropped a bit closing at 80.10

NEWS:
Week Ahead: FOMC Minutes, Retail Earnings, Housing Data
Week's Winners and Losers: Netflix Flies, Shutterfly Flubs
Jobless claims tumble to pre-recession low; inflation stirs
US household debt jumps for third straight quarter: Survey
I have 'sick feeling' 25% crash is ahead: Acampora
Pimco sees an end to bull markets in 3-5 year outlook
Why you should short gold now: BofA technician
It's Getting Easier to Get a Mortgage